AFL CHIEF Gillon McLachlan says there is no evidence Bachar Houli was the victim of racist or religious vilification on Friday night against Collingwood.

Richmond said on Saturday that the AFL was investigating "another incident of abuse" involving Houli.

The League has confirmed the abuse directed at Houli from the boundary line was not racially based. 

"I have spoken with our security team, who interviewed officials who were nearby, and they've spoken to Bachar," said McLachlan on Saturday.

"I've actually spoken to Bachar myself.

"He did not hear, and there were no officials in the vicinity, who heard any racist abuse.

"There was a level of abuse. That's something that goes on in our game. 

"I'm not condoning it but it was a level of abuse that is suffered by players at certain times in our game, as distinct from racial abuse.

It came in the same game that an anti-Muslim banner was unfurled near the scoreboard at the MCG.

McLachlan condemned the banner as "divisive, ignorant and deeply offensive".

The sign, adorned with logos of the United Patriots Front and reading "Stop the mosques", was displayed by the scoreboard at the city end of the ground at halftime on Friday.

Collingwood president Eddie McGuire said on Saturday there was a fine line that supporters have to be cautious of not crossing.

"My understanding is people checked up on whether there was some abuse from over the fence and there was no case, as far as racial discrimination," McGuire said.

"However, we've got to be careful. The great thing about our game is the passion.

"We don't want to ever get to the situation where people are being dehumanised."

McLachlan said the League's security manager was investigating and if the people responsible were AFL members they would "be banned from games".